Al-Walid got his start in business much like other well-connected Saudis by becoming an agent for foreign companies operating in the kingdom. The early 1980s witnessed a massive construction boom and skyrocketing import sector, fueled by high oil prices. Under Saudi law, foreign businesses are required to have a local sponsor who earns a 5% commission from any contract (in practice, though, companies have often been obliged to pay fees of 30% or more to influential middlemen in order to land lucrative contacts). In 1980, the Prince mortgaged a mansion given to him by his father in order to start a company called Kingdom Establishment. He soon landed his first deal - an $8 million contract by a firm in South Korea to build a bachelor's club at a military academy near the Saudi capital.
